There is one reservation that all companies have when contemplating outsourcing and that’s how will any outsourcing company communicate its brand values to consumers? Despite recognising the multiple benefits that outsourcing delivers – from increasing efficiencies to lowering costs – this remains a prime concern and an ultimate ‘deal breaker’.
Prospective customers always say “We’re just too different, our customers and internal processes are difficult to understand, so how can we possibly consider outsourcing?” Each and every retailer has a unique brand identity and ensuring this is reinforced through every channel is vital to maintain customer loyalty and brand differentiation. When outsourcing your contact centre this is even more important. Agents that speak to your customers on a daily basis need to understand the key factors that make your company different and what minimum level of service needs to be delivered.
So how do you make sure your brand will fit with a quality outsourcing arrangement? Firstly, you have to be clear about your brand identity. Who are you? What do you stand for? Who are your customers? If you know who you are serving and why, you can make decisions about the companies you want to partner with. Decision makers are often nervous about outsourcing; synonymous with offshoring, poor service and cost cutting, companies are understandably reluctant to release their brand to a third party. They fear customers will leave in droves and the efficiencies and increase to service promised will never materialise and ultimately all that is achieved is damage to the brand’s reputation.
Choosing a suitable outsourcing partner
The ideal outsourcing partner is one who will take time to understand your brand and your consumers. They will fully embrace your ethos and will train agents to replicate the unique level of customer service that you offer. If your brand is fun and vibrant, you will want to work with an outsourcer who matches this. Likewise, if you are a traditional business dealing with serious issues, such as banking, you need to know if the outsourced contact centre can adopt a more serious stance.
Also, you must look at your marketing strategies and customer base and how these impact your contact centre requirements. For instance, can they handle spikes in calls around promotions, what’s their process for unusual peaks and have they the capability to undertake complex process and report and measure on them?
There are huge benefits to ensuring your brand identity is maintained within an outsourcing partnership. But the one question that’s most important to consider when appointed an outsourcing partner is will your contact centre embrace your brand and encourage you to be part of their business, or, will you be a nameless, faceless company the agents happen to take calls for?
To find out more about delivering excellent levels of service and reinforcing brand values on every call, visit www.pcmsgroup.com
Has everyone been watching the Great Comic Relief Bake Off? We have a lot of very good bakers in the PCMS Contact Centre, so it has been viewed with some amusement. Sadly, I think I make Jonathan Ross look like Mary Berry in that department, but I’m always available for tasting.
PCMS is now just weeks away from becoming one of the Red Nose Day Call Centres. On 13th March 2015 we will be receiving calls from the general public to help process donations. This is the fifth time we’ve worked with the Comic Relief team so we are well versed in knowing how to run the evening. Over the years we have discovered the many hidden benefits to working with Comic Relief, most of them unexpected.
- Feel Good – The excitement around the evening builds during the weeks leading up to the main event, not to mention the hype on the day itself. Having something fun to look forward to boosts agent energy levels.
- Teamwork – The whole business comes together to do something different and good for charity. Having to balance inbound calls with general business activities, releasing agents to support charity work can be a challenge for most companies. Often, this leaves dress down days, bake sales and the occasional bonkers marathon runner, as the only way your team can do something for charity. Comic Relief, gives your whole business the opportunity to devote time to a common goal and be actively involved in proceedings rather than watching the TV alone. Great for team building and bonding.
- Promotes the Contact Centre internally – Everyone in your business gets to witness the Contact Centre in full glory. Members of staff who wouldn’t normally have reason to work with the contact centre suddenly get the opportunity. Understanding what the contact centre does and seeing it in action are very different experiences. PCMS’ MD Richard Smith has also previously joined in the fun taking calls, giving him a great opportunity to interact with our agents.
- Experience – Comic Relief, gives the team great practice for setting up a contact centre. The evening is well planned and the Comic Relief team are a great support, but there is still a lot of planning and preparation for the evening. Team leaders, with assistance from agents, get to see; phones lines being set up, recruitment, forecasting, planning, training, floor walking, query handling, how to write briefing packs, seating plans and all the pre-go-live checks needed for this kind of work. It’s a great experience all delivered in a controlled and practiced environment.
- Recruitment – PCMS has had volunteers from many different family members of existing staff work with us on during the charity evening. We’ve had some who had never experienced working in a contact centre before and after the evening they leave with a better understanding of the benefits of working in such a role. Many realise the variety of skills that can be developed in this environment and have since applied to work in the Contact Centre at PCMS. Opening your doors to possible recruits for the evening, may help you in the long term.
When recruiting for our Contact Centre we typically don’t worry about a candidate having Call Centre experience, after all PCMS can provide that. However, we do notice certain types of individuals that blossom within this environment in different ways. As the retail world moves closer towards providing a seamless level of customer experience, supported by an omni-channel strategy, it’s more important than ever to employ a number of people that bring a variety of skill and knowledge to the Contact Centre. We look for individuals that can deliver great customer service!
Listed below are just some of the different types of personalities that you could employ to enhance your customers’ journey.
The experienced: Within our contact centre you will see agents who have worked in convenience stores, as party planners or within fashion outlets. Their experience is invaluable. Agents with this experience really understand the customer journey form a different perspective. They know if a convenience store doesn’t receive the correct stock, this can have a massive impact on the stores’ finances. They understand the passion of the callers and are prepared to go that extra mile having been there before. PCMS look for agents who understand what the retailers or their customers need.
The quieter ones: I’ve seen first-hand a whole range of personality types displayed in assessment centres. Often your eyes are drawn to the most outgoing person who captures the attention of those around them. While these character types are undoubtedly good to watch, are they what the customer needs? Never underestimate the power of the listener. This is a person who listens to the questions, thinks about how they are going to answer and takes the time to formulate their response. Think about the customer experience. Are your customers going to want to speak to someone who listens, thinks about what they are doing and takes the time to get it right first time? Or do they want someone who talks at them?
The analytical: There are different levels of customer service. Most calls or emails will have a straight forward request, which is easy for the agent to carry out. But sometimes a customer will contact us because they are confused about a product or have a query which takes some research. Agents with good analytical skills will be able to work through the query solving each element in turn, while keeping the customer’s needs at the heart of what they do.
The excited ones: The best customer service comes from people who care about what they do. These are the people who get genuinely excited when talking about their role and what they deliver. PCMS has received numerous compliments from customers about agents and their level of enthusiasm on the telephone. One of our customers wrote: “The phone call I just had with [agent] has made my day. Not only was he friendly, helpful and quick but he was constantly making me laugh. It’s really nice not to have a robot.” If an agent is excited about what they do and how they can do it, this will come across in the service they deliver.
The mature: Unrelated to age, a level of maturity can impact how an agent responds to a situation. Customers can call when they are worried, anxious or simply don’t understand something. An agent must have the maturity to react accordingly and make the best decision for the customer. They also have to be able to change their style and their response depending on who they are speaking too. The mature advisor is able to keep calm and do the right thing.
The energetic: Working in a contact centre is a demanding job. There is nowhere to hide. An agent needs to be energetic and have plenty of stamina to answer each call, while maintaining call quality. They also have to have the determination to keep improving their performance, and therefore our standards, on each and every call they receive.
The empathetic: Your customers need to be understood. They need to be helped. They even want to be cared for. If your agents don’t have any empathy for your customers, no amount of training or development is going to improve your customer experience.
The innovative: the Retail industry is constantly changing and developing. To provide a great service, agents have to be prepared to embrace change too. This could be using social media, new systems, supporting new processes such as Click & Collect or changes to opening hours. You can rest assured, the needs of contact centres will continue to change and to have a lasting future within the industry, you have to be prepared to change and adapt with it.
If you want help providing a seamless customer experience, then speak to our Contact Centre Manager to find out how agents with different skills sets can benefit your retail business.
The last quarter of 2014 brought both expected and unexpected challenges; Black Friday, Cyber Monday, Christmas and even a ‘weather bomb’ in the UK. Some events saw huge increases in sales revenues for retailers, whilst others brought disruption to retail delivery schedules.
While the spike in trade was well received, warehouse and customer service departments have felt the strain of additional calls, orders, emails and requests. When all hands are needed on deck, quality standards can start to slide. So how do you go about reintroducing quality standards after peak trading? In a sea of requests and challenges the first thing to decide is what to focus on.
“Staffing and morale are the first on my agenda. If you don’t have those then nothing else is going to work,” said Heather Ramon, Forecasting and Planning Manager. January typically being a bleak month of broken resolutions and no money, morale after the busy Christmas period can be low. Simple ideas like a new sales challenge, mixing up the teams and sharing the year’s plans with the agents can make the difference. When agents feel valued and enjoy the work they do, they will be more receptive to going the extra mile for you after the New Year.
Revisit new processes; now your employees have settled back into a routine it’s time to evaluate the service and look at where improvements can be made. David Hood, Contact Centre Resource and Scheduling Manager said, “If volumes have exceeded forecast and companies are working to tight deadlines, checking agents are following procedures can go out the window. If your quality has fallen over the Christmas period the first thing I would do is check everyone is following the correct procedures. Get the rules back in place and you will establish some control.”
Take the time to review the Christmas experience and ask yourself the following questions:
- Did the challenges cause emergency processes to come into place?
- How is this impacting the customer experience?
- What can be done to avoid this happening next Christmas?
Planning for the long term can be wise and ensures you won’t make the same mistakes again. Take a moment to remember what quality looked like before peak Christmas trading. What did your service deliver that customers loved? What were the standards your team worked to, which helped to maintain these quality measures? Reintroducing the assessment of call quality can be an easy win that has the biggest impact. “Consistency across the floor is vital. Share the best practice from the highest call quality scores and introduce them as standard to the rest of the agents. This ensures your customers receive the best service no matter who they speak to. This is especially important for your regular, loyal customers,” said Kay Twigger our Skills and Training Manager.
Of course call quality should not be measured in isolation. At PCMS, we place an equal importance on task quality. By measuring task quality you will soon be able to see where agents are driving unnecessary customer contacts. If however, you are still over whelmed and unsure where to start, ask your customers. They will tell you where their frustrations lie. This will give you clear insight into what your customers are actually experiencing. Give them a platform to inform you what has worked well and where improvements and quick wins can be made.
Follow these simple measures for a quick way to improve the levels of quality in your contact centre, or for more advice contact our Call Centre Manager on +44(0)24 7669 4455. Keep customer experience as one of your highest objectives and your call centre will play an important part in a retail omni-channel strategy.
Measuring levels of customer service is largely subjective and insight is usually provided after conducting satisfaction surveys. There are however some key metrics that can be monitored which give an indication of the service provided and can be vital in running a customer focused helpline within a retail contact centre.
Average call handling time (AHT)
The quicker the calls, the lower the cost, right? Wrong. AHT is a measure which should not be forgotten; after all it tells you what is happening to your service. If too much emphasis is placed on having low call handling times, what happens to the customer experience? In reality calls become rushed and vital information can be missed. For a helpline to give a quality service, calls should run at a rate which is comfortable for the customer. The call should last as long as the customer needs it to; spending time with the customer, until the agent is confident the issue has been resolved will help to increase your first call resolution rate.
First call resolution
The purpose of a helpline is to help, but not every call can be resolved at first contact. First call resolution should be a transient number, which increases as the service develops. Initially, help will be required from second line teams to investigate the issue. When the underlying problem has been resolved, a good service will ensure the first line team are given the information on how to fix it. Subsequent calls can then be resolved at first point of contact as agents have access to this new information, increasing first call resolution.
The quality of the call is a key metric when measuring the levels of service provided to consumers and the complexity of the queries should be taken into consideration as part of the call quality. Helplines dedicated to retail consumers must ensure that quality is paramount when giving advice and guidance about products. If callers do not trust the advice given, they will call back at a later point and will look to other shopping channels and social media platforms to inform others of the service received.
Call centre agents are your life source for excellent customer service. Agent satisfaction measures are not a common metric used within a helpline service, but how can your customers be expected to get great service if your agents are unhappy? By measuring, and ultimately working to improve your agent’s satisfaction within their roles, you can be assured of a better experience for your callers.
Metrics vary with services and the needs of your helpline. The above is by no means a comprehensive list. For support and guidance on managing a helpline to best meet the needs of your consumers, please contact our Contact Centre manager on 024 7669 4455. But remember, all helpline metrics feed into one another. The happier the agent, means higher call quality scores that result in better customer service received, which increases first call resolution rates and lowers AHT.
In today’s environment it’s easy to assume all customers have a wealth of technical knowledge. With the rapidly changing technology market customers can be easily left behind when it comes to the purchase of new hardware. Retailers are now in a position of having to provide technical support outside of their usual customer services provision. This manifests itself by way of a customer helpline, whose purpose is to help consumers with technical queries and follow them through to resolution. Ask a retailer who currently delivers their technical support? They will say it’s their technical team. This raises the question: can a technical support team run a helpline with great service to a non-technical customer?
If customer experience is at the heart of your business strategy; PCMS suggest moving helplines out of the technical environment and into customer service. Doing this, will ensure your customers are receiving the correct advice pitched at the correct level of understanding. Ultimately this leads to a better customer and agent experience.
4 reasons why customer support should deliver helpline provision:
1. The service isn’t technical enough
Providing a technical product helpline isn’t easy. There is a fine line between having too much technical knowledge so you can no longer relate to your caller and not having enough to gauge the difference between a technical issue and a user error. Technical support lines generally lack the levels of customer satisfaction that consumer facing support lines can offer. On the flip side – customer support lack the technical knowledge of the IT support teams. This is why PCMS believe the two should work together. By allowing tech support teams to concentrate on the really complicated problems; customer service agents can easily be given additional training to assist with basic technical queries whilst delivering an excellent customer experience.
2. Simplicity is vital
To provide a technical service a great deal of product information is required, however too much information can be detrimental. From personal experience; having worked for a company for three months, we had just completed some building work where everything had gone according to plan, until Monday morning when nothing worked. Panicking, I called the helpdesk (delivered by a technical support team). The lady on the other end of the phone advised me to “reset the server, give it 5 minutes and everything should be back on”. Brilliant – one question, “Where is the server and what does it look like?” Twenty minutes later of being told repeatedly that the “server looks like a server” I finally discovered it was the thing in the corner which to me, looks like a fridge. We got there in the end but the experience is common. To a technician, the server was obvious; to the customer this was a new experience and not a great one. The technical support agent didn’t understand my challenges and couldn’t relate to my lack of technical savvy.
3. The call needs following up
While a company can expect a customer service line to have a high first call resolution rate, dealing with technology requires some tickets to be left open for further investigation. If a product has to be returned for fixing, customers will also expect to be able to track where it is in the process. CRM and other systems in use need to be supportive of calls being left open and teams structured in a way which allows for investigations and complex support. Tools which track open cases and highlight where customers are waiting are vital.
4. The passion has to be there
A service that has the correct technical offering and provides a solution in line with the customer’s technical ability and has the right technology and infrastructure is no good without the dedication to customer experience. One of PCMS’ biggest strengths is our ability to think like a retailer. We have a passion for doing things differently and challenging sales and service standards. Customer support teams generally share the same passion and this is a fundamental part of your customers’ experience.
Helplines have become an essential part of customer facing call centres. Dedicated helplines are generally used by consumers who seek advice and guidance about your company’s products or services; queries tend to be typically more technical than standard customer service calls. Listed below are 6 key questions, PCMS believe you should be asking your helpline provider.
1. What is your speciality?
Working with a provider who is a specialist in your field adds a different dimension to the service. A specialist brings an intuitive understanding to the helpline, offering advice on how to overcome challenges and has experience on how to make the service the best for your budget. We work with retailers providing everything from helplines, product recalls to technical product support. This is not to say you should discount a provider who is outside of your usual industry sector. For example, a car manufacturer may look to a retail specialist for helpline support as they are still retailing a product.
2. What are your opening times?
The reactive nature of an outsourced helpline means your service provider should be able to answer queries when your customers want to ask them. The 24/7 nature of retail means this is just as likely at 8pm as it is at 9am. Is your provider able to match, at the very least, the opening hours of your stores? Can your provider offer you the level of weekend support you require?
3. How will your relationship with IT be managed?
The outsourcing relationship won’t work if your service provider is unable to access the necessary systems for CRM, logging and information. This will inevitably lead to gaps in the service and poor customer experience. If the provider isn’t able to manage the IT relationship in house, you need to understand what SLAs, KPIs, etc their provider is working to and what the penalties are for not adhering to them. You will also need to consider what level of management information your vendor is able to provide you with and how effective this information will be when building or reviewing your business strategy.
4. What resolution rates are you working to?
Ideally a helpline should be able to quote what their first call resolution rate is. If the service is more complex, say managing product recalls or assisting the set up of electronic goods, then does the vendor offer 2nd line support to manage more complex queries, which in retail, can involve multiple departments and business streams? With resolution rates, your vendor should also provide information on SLAs for answering contacts and KPIs on quality management. For those new to the contact centre industry balancing SLAs with budget can be challenging. Your vendor should be able to make recommendations based on your needs and budget.
5. Can I have disaster recovery?
Disaster recovery is not just limited to being able to trade when the worst happens. Most retailers don’t have a day to day need for a product recall solution. But like car insurance and life insurance, a disaster recovery solution is worth its weight in gold when the worst happens. Manufacturers and retailers need to be prepared to act fast when setting up a helpline for product recalls. With space and resources at a premium, retailers can find a simple, and affordable, solution which can call the troops to action should a disaster occur.
Outsourcing can be a difficult decision to make; if you need help deciding if it is the right route for your business or to find out more tips on looking for the right helpline provider, call our Contact Centre manager on +44 (0)24 7669 4455.
One of the questions we get asked regularly is “what’s so different about a helpdesk?” It is a fair point; in some ways it is just another contact centre – managing inbound and outbound telephone calls, emails, white mail and online activity. There are some particular characteristics that helpdesks have that determine how they can be implemented:
1. It’s ‘cases’ not ‘contacts’
There is a much higher incidence of back-and-forth communication between customer and advisor in helpdesks than most call centres. In IT service desks the customer may need to go away and test something and return with results. However, in contact centres there is no end-to-end tracking, which means the customer has to explain their situation repeatedly and rely on the judgement of each advisor. In a well-run service desk, case information is readily available to everyone and the next action is clearly defined. Until the customer says so, the case isn’t closed. Helpdesks need to monitor elapsed time from creation to closure of a case, not just statistics on individual contacts. Contact centres that rely on operational systems such as email and telephone, will not be able report on cases.
2. The clock is ticking
Calls to most other contact centres have a mix of light and shade – there will be complaints but there will also be orders and general requests for information. Although first call resolution is growing in importance it is still often not the key metric. In helpdesks almost every call will be from a customer whose product is not working. The consequence could be a returned product, reputational risk or even a health and safety issue. How long it takes to diagnose and fix the problem in the customer’s eyes is crucial. Most contact centres are focusing on individual skillsets being worked. The helpdesk has another dimension – the different escalation levels and time elapsed.
3. The bill keeps rising but escalation is important
Contact centres are the lowest cost channel in helpdesks. The more a helpdesk can fix, the less requirement there is for more expensive technical resource. The efficiency and accuracy of a helpdesk has a direct impact on the availability of more highly-skilled and more expensive resource. Failure to fix a problem to a customer’s satisfaction can result in a costly return too.
4. Data management is vital
In helpdesks, the first few calls can be indicative of a much bigger problem. A helpdesk that can quickly identify commonality between problems and notify manufacturing plants or suppliers can quickly avoid costly recalls and potentially life-threatening manufacturing faults. Capture of call reason codes and analysis is good practice in all contact centres. In the helpdesk it is crucial to assist with root cause analysis which will prevent much bigger problems and greatly reduce call handling time.
5. Knowledge management is king
In helpdesks there are many symptoms, many possible solutions and many problems. In a generic contact centre new employees can slowly become more proficient over time. In a help desk even the newest employee is expected to have all the answers by the customer. A good knowledge base that gives every advisor the latest information and the best decision-making can have a disproportionately large impact on case closure, customer satisfaction and cost.
6. Forecasting is a dark art
Most contact centres are forecastable based on seasonality, time-of-day trends and campaign activity. By its very nature, help desk activity is less predictable. Forecasting and planning is at a premium. There is always a trend or pattern – it can just be harder to find. The driver for overall volume may be units sold, firmware upgrade dates, temperature, weather conditions, licence renewals etc. and getting hold of the right data may be a challenge. Operational plans need to be flexible too with some thought on working patterns, flexible contracts, how overtime is managed and opening times to give the greatest agility in responding to the unexpected.
In summary, helpdesks are a subset of contact centres. Many of the same principles apply but the drivers may be different and helpdesks rely on a supporting infrastructure of case management, workflow and knowledge management tools.
We’ve all been there, the sudden realisation that the short term blip is now the long term problem. You look out across the contact centre floor and take a gulp as you realise there aren’t enough people and you are already struggling. You look back at the email from your colleagues in marketing which is apologetic but still shows a re-forecast that is 30% higher due to the success of the current campaign. You open the next email which tells you that logistics are going to struggle for the next two weeks because of it. Time to pull on your spandex Super(wo)man outfit and perform miracles with a limited budget. So what do you do?
#1 Create a realistic forecast. The first thing is to go back to basics and re-forecast. As quickly as possible you need to identify the shortfall and the impact of it – what is going to happen tomorrow and the day after. You need to address the short term before turning to the longer term issues. What your colleagues are relying on is not “it can’t be done” but rather “it’s going to be tough for the next couple of days but this is what we are doing”. Remember to allow for the failure now in the forecast. All the unanswered calls and missed deliveries are going to create additional work.
#2 Take it seriously. The first potential mistake is not to take it seriously. The decisions you make immediately determine whether this is a one week problem or something with a legacy for months. Occasionally colleagues do get their numbers wrong but the assumption should always be that they are correct. Over the next few days you are going to need the support of your team. If you lose your existing resource and experience through expecting too much of them, without support, everything which follows is going to be that much harder. If you ignore a forecast which turns out to be right, they are going to be swamped for a long time with unhappy customers in huge numbers and it will inevitably lead to sickness and leavers.
#3 The costs are the costs. You also need to be very clear on your costs and opportunity costs. When you have done your re-forecasting it may seem that there is a huge amount of expenditure required which seems exorbitant. The point is that the number is big because of expected increased sales – there is going to be a payoff to offset against it. Don’t try and take shortcuts and prejudge how your expenditure requests will be greeted.
#4 Protect the short term. Before addressing what happens next think about what you are going to do right now. There are a number of short term actions which will minimise the impact at the moment:
- Call avoidance – are there any messages which could be played to all callers which would avert them needing to speak to the advisors? Can the field reps get involved with their customers? Is there a PR message which could go out? Can the website be changed to reduce customer’s expectations on delivery lead times? Most importantly don’t have advisors making false promises that are only going to increase workload later on.
- Increasing capacity – Can any back office work be held back for a couple of days? Can other parts of the business contribute any resource? Is there any TOIL or overtime which could be used? Do you have an outsourced partner that could take a larger share of work in the short term?
- Improving efficiency – ensure that call control is observed and that unnecessary call-backs aren’t promised.
#5 Plan the medium term. If the numbers are large you need to consider spreading the effort and risk by using outsourcers. Ideally this would have been done before the peak hits but some of the best outsourcing partnerships are forged through Blitz spirit. When there is time to bring new staff in how are you going to deploy them to best effect? The perfect solution finds a way of putting new staff on to the lowest skillset – whether this is with and outsourcer or in-house. If you are using an outsourcer you need to make sure you clearly define the inputs and outputs. While your standard induction process may take two weeks you can create a streamlined version which will give the training to get a specific job done right now – you are not looking for new employees for life. Remember to give them the support they need through floorwalking. Remember also to plan for inefficiency during their early days. Finally, allow for attrition and inaccuracy in forecasting. You have one shot to correct the situation and it is far easier to reduce numbers than to increase them.
#6 Plan for the long term and don’t do it again. Assuming this works, you can look back with some fondness on a job well done under pressure. Your team will have bonded and you have some great war stories to tell on team nights out. This doesn’t mean you want to repeat the exercise. You need to document the lessons learned and make sure you walk through the scenario with your marketing and logistics colleagues. They need to understand the full impact of what can seem like trivial decisions – not least because the full cost needs to be fully understood.
The overriding challenge is to remember that peaks are just exaggerated Business As Usual. The moment you panic or take short term measures with no consideration of what comes next you run the risk that the situation will become self-generating with customer service issues created by your actions rather than the initial cause. It is often worth taking a little extra time to think clearly and even to take some of the pain at the start rather than look for the quick fix.
For further advice and guidance on what to do when it has already gone wrong, speak to our Contact Centre Manager.
Outsources can do everything you do in-house unless there are some fundamental process barriers. Generally outsources have a hunger to prove their capability, are not bound by “how things have always been done”, and may have better technology to do it with. The challenge is whether they can do so in a cost-effective manner which results in a financial benefit for you. Fundamentally, for it to work for both parties the outsourcer needs to be able to make sufficient profit advantage over an in-house solution to allow a margin and still offer a return on investment. Assuming the business case stacks up the next question is about what to outsource?
How do I know what to outsource?
To help decide on what to outsource, you first need to define ‘core business; these are the activities that you would never want to lose close control of. These tend to align to key business risks, differentiators, regulation or confidentiality. Examples may be executive office complains, major sales, health and safety issues or product design. They are characterised by financial significance, intellectual property or strategic decision making. These are the activities that may be capable of being outsourced but, because they are the fundamentals of your business success, you don’t want to.
Often we find that highly-skilled people are doing mundane and lower-skilled activities for most of their working day. They really come into their own when an unexpected situation or an escalation comes about. Re-engineering processes to ensure that the people with the right skills (or technology) do the right jobs is one of the easiest ways to make outsourcing work for your business.
Before even considering outsourcing you need to understand what is truly core for your business. You can then arrange your resourcing to maximise the return on your in-house investment while using partners to best effect.